General Motors

A 2011 Chrysler Town & Country rolls off the final inspection line at Chrysler Group LLC’s Windsor Assembly Plant.

21,000 unionized auto workers in Canada are another step closer to job stability until at least 2016.

Last night, union workers at General Motors plants in Canada approved a collective bargaining agreement between the Canadian Auto Workers and the auto company.

Ford workers in Canada approved their deal earlier this week. And Chrysler workers will vote this weekend.

CBC News in Windsor reports on what these deals mean:

The CAW union and Chrysler have reached a tentative deal similar to the agreements reached with GM and Ford. Ford workers in Canada ratified their agreement earlier this week. GM workers are expected to do so sometime tomorrow. More from CBC Windsor.

Ken Lewenza, president of the Canadian Auto Workers.
Canadian Auto Workers union

One more agreement, and the Canadian Auto Workers will be on the road to deals with all three U.S. automakers.

The CAW and Chrysler are working on finalizing a labor contract this week.

Ross Marowits of the Montreal Gazette reports the two sides are close to reaching an agreement.

The chairman of the CAW master bargaining committee for Chrysler said the two sides made significant progress over the last 24 hours.

“I think we’re closer and closer by every minute and every hour and again we’re just working at this closing up those loose ends,” Dino Chiodo said Wednesday in an interview from Toronto.

“Unless things completely fall off the rails, which I don’t see happening at this point, I think we’re moving along very well and I’m confident that sometime today or tomorrow we’ll be able to achieve the final task of wrapping this up.”

The bargaining teams are expected to meet tonight after 7 p.m. The CAW and General Motors have reached a tentative agreement. Unionized GM workers in Canada are expected to vote on the proposed agreement today and tomorrow. Ford workers in Canada approved their agreement this past Monday. Altogether, the CAW represents around 21,000 auto workers from the "Big Three."

Canadian Auto Workers union at a rally.
CAW / Facebook

Ford's union workers in Canada have approved a four-year contract with the company.

And the Canadian Auto Workers union have a tentative agreement with GM.

Now, talks with Chrysler continue this week.

CBC Windsor has the latest on the talks:

The CAW's president, Ken Lewenza, knows it's not going to be easy with Chrysler. Company executives have made it clear they want an agreement that lowers labour costs to match those in the United States.

Lewenza said it could be days before there is a tentative agreement between the two sides.

"We can get a deal. I've a great deal of respect for [Chrysler CEO Sergio] Marchionne and his management team," Lewenza said. "I don't hide that and I think he's got respect for our union. But at the end of the day, you can only respect each other when you dot the I's and cross the T's."

If talks stall, the CAW can strike.

But with a deal signed with Ford, and a final deal with GM expected to be approved by GM union workers in Canada  this week, a strike at Chrysler plants in Canada doesn't seem likely.

Steve Carmody/Michigan Radio

DETROIT (AP) - General Motors is offering big discounts to boost sales of the Chevrolet Volt, an electric car that struggled to attract buyers until its price began dropping early this year.

Discounts run as high as $10,000 per Volt, according to figures from TrueCar DOT com, an auto pricing website. They include low-interest financing and subsidized leases.

A 2008-2010 Chevy Malibu. One of the models being recalled by GM.
IFCAR / wikimedia commons

The Detroit News reports GM is issuing two recall campaigns.

The smaller recall affects bulb indicators on 2013 Chevrolet Sonics.

The larger recall has to do with four-speed automatic transmissions on 2007-10 Chevrolet Malibu, Saturn Aura and Pontiac G6 models.

More from the Detroit News:

The Detroit automaker said Friday it is recalling 426,240 Chevrolet, Pontiac and Saturn sedans in the United States to repair a condition in which the transmission gear position may not match the gear on the shifter. That could lead to the vehicles rolling when drivers think they are in park.

"The driver would be able to remove the key from the ignition, but the door locks may not unlock automatically and the PARK indicator lamp would not be illuminated. The driver may not be able to restart the vehicle and the vehicle could roll away," GM said.

An investigation by the National Highway Traffic Safety Administration sparked the discovery of the transmission problem.

Michigan Radio's Tracy Samilton reports the problem has caused four accidents that GM knows about, but no injuries have been reported.

Dealers will either replace the transmission cable or put reinforcement on it.

Chrysler's Windsor Assembly Plant.

The head of the Canadian Auto Workers union says General Motors is waiting for a counter proposal from the union, and he says there has been significant progress toward a new labor deal.

CAW President Ken Lewenza says the union will make the offer today. He also says progress has been made with Chrysler.

The union reached a tentative deal with Ford earlier this week.

From CBC News Windsor:

Here is a quiz:

The Obama Administration is responsible for:

a) The financial rescue of General Motors;

b) The future financial failure of General Motors;

c) Both a) and b);

d) None of the above.

You won’t find the correct answer in upside-down small print at the bottom of this blog.  I am not quite sure myself what the right answer might be.  But answer (b) might not be such an incredible response.

Reuters reports on the numbers behind the Volt - "There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce."

Jeff Smith / Flickr

There's one week left in contract negotiations with the Canadian Auto Workers union, and it appears there are still some major sticking points in negotiations.

We posted last week that the union voted to authorize a strike if they determined one was needed.

Reuters reports plans for a potential strike are moving forward.

Strike captains at the union, which represents about 20,000 members at the three companies, were to meet in Toronto on Monday to advance plans for a triple strike.

"All three bargaining committees are determined to reject these demands and reach a fair deal," the CAW said in a leaflet distributed to members on Monday.

"The union recognizes the fragility of the industry and the need to stabilize fixed costs, while finding a solution rewards members' work. Unfortunately, our efforts have not been met with equal willingness by the companies to negotiate fair terms," the leaflet said.

The last time the Canadian Auto Workers went on strike was in 1996.

Auto sales grew in 2014
Lester Graham / Michigan Radio

August was a good month for U.S. automakers compared to a year ago. In total, the big three sold more than 585,700 vehicles last month.

Chrysler had its best month since August 2007, according to the AP, and had sales of more than 148,000 vehicles. They say their sales were led by demand for the Dodge Ram pickup truck.

Ford sold 197,249 vehicles in August, and in a press release said high gas prices led more people to their lineup of vehicles.

“As fuel prices rose again during August, we saw growing numbers of people gravitate toward our fuel-efficient vehicles – cars, utilities and trucks,” said Ken Czubay, Ford vice president, U.S. Marketing, Sales and Service.

And General Motors sold 240,520 vehicles in August. More than Ford or Chrysler.

In their press release, GM said it's ready for gradual improvements in the economy.

“The single message Chevrolet communicated this summer was ‘confidence’ and it rang true with customers when they saw how our product lineup is being transformed,” said Kurt McNeil, vice president of U.S. sales operations. “All four of our brands are building momentum behind new products so we’re very well positioned as the economy continues to slowly improve.”

American Axle told the Detroit Free Press this morning it plans to "add 400 to 500 jobs in the next couple years" at its Three Rivers driveline plant in southwest Michigan. The company builds drivetrains and driveline systems and components for auto and truck manufacturers. Its biggest customers are Chrysler and GM.

User IFCAR / Wikimedia Commons

In mid-September, General Motors will temporarily close the Detroit-Hamtramck plant that makes the Chevrolet Volt for about a month.

User: dmealiffe /

The Canadian Auto Workers union said today its members have voted to strike against Chrysler, Ford, and GM, if necessary.

The Detroit News reports the CAW is negotiating new contracts with the automakers. Current contracts are set to expire on September 17:

The CAW is expected to meet with the automakers Monday and Tuesday in downtown Toronto.

Steve Carmody/Michigan Radio

Officials from Lansing and Flint are hoping a conference this week will help convince investors to redevelop some former General Motors auto plant sites.

Local leaders will meet with federal and state officials in Lansing Wednesday to discuss how to revitalize former auto plant sites in their cities. The group is going on a bus tour of the sites in Lansing this afternoon.

Steve Carmody/Michigan Radio

General Motors’ big hope to grab a share of the luxury compact segment rolled off the assembly line in Lansing today.  Tomorrow, the Cadillac ATS rolls on to the world stage.

GM Renaissance Center in Detroit.
John F. Martin / Creative Commons

Today is the deadline for more than 40,000 General Motors retirees to accept their former employer's offer of a lump sum buyout of their pensions.

Otherwise, their pensions will be taken over by Prudential Insurance.

GM's Randy Arrix said the change is part of the company's efforts to create what it calls a "fortress balance sheet."  Getting underfunded pensions off the books strengthens the balance sheet.

"Pension obligations are very volatile, and they're volatile because they're dependent on some things within our control like contributions, and other things that are not, said Arrix.

Some GM retirees are angry about the change, which they see as a broken promise by GM, but for others, the buyout is an opportunity to control their own money.

Steve Carmody/Michigan Radio

General Motors is celebrating an environmental milestone. The company says a Lansing autopart distribution center is the automaker’s 100th facility to go “landfill free.”

screen grab / WSJ MarketWatch

Update 2:03 p.m.

General Motors CEO Dan Akerson told stockholders at today's annual meeting that "he regrets GM's stock hasn't done well." GM's stock price is hovering around $22 a share.  

That's a big drop from 2010, when GM held an initial public offering and the stock sold at about $33 a share.

"I mean it's great we had a good year last year, why is the stock down? Because there's uncertainty into the future.  The most obvious is, uh, Europe," said Akerson.

Alan Crosthwaite

General Motors' Customer Care and Aftersales (CCA) Veterans Affinity Group (VAG) will honor U.S. Military personnel who lost their lives in Afghanistan at the first annual "Field of "Flags" event.

The formal semi-military event, featuring U.S. Navy Color Guard members and Military Buglers, will be held Tuesday, May 22 from 1:00-2:00 p.m., at the GM CCA Willow Run Complex located at 50000 Ecorse Road, Belleville, Mich., 48111. The event is also in conjunction with the GM UAW local 174.

"The Field of Flags event leading up to Memorial Day is another way we can honor their commitment and say thank you to the members of the U.S. Armed Forces and their families for their courage, service and sacrifice," said Steve Hill, GM North America Vice President of CCA and GM's corporate champion for the group. "This is a grassroots event sponsored by our employees, who have a passion for this cause, and spend their own time to demonstrate their support and respect for the U.S. Military."

Approximately 2,000 flags will be planted in a field on the lawn of the facility. The ceremony will include the raising of an American flag flown over Afghanistan, the playing of "The National Anthem" and "America the Beautiful," the reading of the "Field of Flags" declaration, remarks by guest speaker Steve Hill, a special CCA VAG presentation, the planting of the final flag and a memorial wreath, the ringing of a ships bell honoring service members lost, Taps, and the presentation of the flag flown over Afghanistan.

GM's VAG Customer Care and Aftersales, headquarters in Grand Blanc, conducts fundraising activities to support GM employees who are U.S Military Veterans, in the Reserves or National Guard. To date, the group has raised $20,000 for Piquette Square, a non-profit organization in Detroit that helps homeless veterans. Additionally, it provides support through various activities such as sending care packages and phone cards troops abroad.

"Our group's overriding objective is to take care of the military men and women who take care of us," said Don Gore, president of the Customer Care and Aftersales VAG Chapter. "I am proud of the job our team has done, which has resulted in overwhelming support for veterans, deployed military and fellow employee reservists."

Lindsey Smith / Michigan Radio

A former General Motors plant in a Grand Rapids suburb is getting new life and a new identity.

The 2 million square foot stamping plant in Wyoming, Michigan was the first manufacturing plant sold after GM’s bailout. The more than 75 year old plant is almost completely demolished now. The plant was once the city of Wyoming’s largest taxpayer and employer.

Now it’s been rebranded as “Site 36”. (It’s located on 36th street in Wyoming.)

“We cannot go to a customer, a company, a site consultant and say ‘well we’ve got a former General Motors site.’ Okay? That brings with it a certain image,” said Birgit Klohs, President and CEO of The Right Place. It’s an economic development group based in Grand Rapids that’s helping market the site to international companies.  

Klohs says rebranding the site is important for the people who live here too. “We’re done grieving. We need to come up with the next strategy and rebranding to us was a key issue for us in saying it’s time for the 21st century,” Klohs said.

The GM Tech Center in Warren.
user localhero / wikimedia commons

Update 2:35 p.m.

The Detroit News reports that Warren Mayor James Fouts toured GM's Tech Center after the exposion. He said he had a "chemical taste in his mouth" when touring the site.

"I just want to say how very fortunate we are that only one person was seriously injured," said Fouts, who toured the site after the fire was extinguished. "There were 80 people in that building, but only one person received a possible concussion and some chemical burns, from what I've been told."

...According to Fouts, the building housing the research lab received considerable damage.

Fouts said three "very large windows were blown out and thick, fortified doors were forced open by the blast."

The News reports that a GM official said the hospitalized worker "is expected to make a full recovery and that the injuries are not life threatening."

1:27 p.m.

GM says the explosion was unrelated to the Chevrolet Volt or any other production vehicle.

"The incident was related to extreme testing on a prototype battery," officials said in a statement.

11:32 a.m.

There was an explosion at the General Motors Technical Center in Warren, Michigan this morning.

The Detroit Free Press reports on one person who was seriously injured in the blast:

A woman working in a battery research laboratory was taken to St. John Hospital and Medical Center in Detroit, Warren Fire Commissioner Wilburt (Skip) McAdams said.

“She is conscious; she’s in a lot of pain. She’s a ‘Priority 2,’ which means she has life-threatening injuries,” McAdams said.

More from the Detroit News:

One person was transported to a hospital and four others were being evaluated Wednesday after a lithium battery exploded at a battery research lab at the General Motors Technical Center.

"We are aware of an incident this morning about 8:45 a.m. in one of the laboratories at the Alternative Energy Center at the General Motors Technical Center in Warren, Mich.," GM said in a release. "Fire and emergency authorities were called to the scene. The building was evacuated. All employees have been accounted for. We are aware of five employees being evaluated on scene by medical personal and only one employee is being further treated.

The incident is still under investigation by GM and the Warren authorities. Any information or discussion of the nature of the work in the lab or cause of the incident is entirely speculative and cannot be confirmed at this time."

user Mariordo / wikimedia commons

GM is planning to extend a production slowdown for its extended-range electric car, the Chevy Volt.

Last month, Michigan Radio's Tracy Samilton reported that GM was halting production of the Volt for five weeks in March and April to reduce inventory, in part because of lower-than-anticipated demand.

Samilton wrote:

The car has been highly praised, but it’s expensive.  Even with a $7,500 federal rebate, the Volt still costs about $32,000.  Meanwhile, people can buy a highly fuel-efficient regular car for much less – including GM’s own Chevy Cruze, which costs about $19,000.

Additionally, the Volt facility was scheduled to be shut down for two weeks in July---a common practice for car factories---but GM has now extended that period to three weeks, again citing a need to reduce inventory.

But according to the Associated Press, "a spokeswoman says the company sold a record number of the electric cars in March and may cancel the extra week if strong sales continue."

-John Klein Wilson, Michigan Radio Newsroom

(photo by Steve Carmody/Michigan Radio)

 Lansing area business and civic leaders say they are going to work together to market hundreds of acres of vacant industrial land.

The capital city region has more than 400 acres of land left vacant by cuts in the auto industry.

Bob Trezise is the president of the Lansing Area Economic Partnership.  He says in the past the different local governments tried to develop the old industrial land separately..

Douglas Sprott / Flickr

Japanese car sales in the U.S. have nearly recovered, a year after a tsunami devastated parts of Japan.  

The disaster affected many Honda and Toyota suppliers, and the companies’ car inventories in the U.S. plummeted. 

Michelle Krebs is with  She says Hyundai and Kia, along with Ford, General Motors and Chrysler, all benefited from the situation.  

"The market share runs about 45-46% for the Big Three in the U.S.," notes Kreb.  "That shot way up to 50.3 % - a number we hadn’t seen in a long time."

General Motors will temporarily suspend production of its electric car with extended range, the Chevy Volt, to manage excess inventory on dealer lots. 

The decision puts about 1,200 employees at GM’s Detroit Hamtramck plant on layoff. 

The Volt assembly line will shut down between March 19th and April 23rd, to give dealers time to sell the Volts they already have.    

Demand for the Volt has been lower than GM anticipated. 

The car has been highly praised, but it’s expensive.  Even with a $7,500 federal rebate, the Volt still costs about $32,000.  


General Motors is forming an alliance with French carmaker Peugeot to help the company make progress in getting to a breakeven point in Europe. 

GM made a record profit last year, but it was no thanks to Europe, where the company lost $700 million.  

The limited alliance with Peugeot will involve the joint development of some car platforms and joint parts purchasing. 

The companies estimate it will save a total $2 billion within a few years.

GM CEO Dan Akerson says the two companies will continue to compete in other areas.



General Motors made a record-breaking profit last year. And to date, taxpayers have recovered close to half the $50 billion federal investment in the company. So the auto bailout worked, right? Wrong, say Republican presidential candidates, who insist the bailout was a huge mistake.


Michigan Radio's Tracy Samilton reports.

General Motors posted a record profit of $7.6 billion in 2011, although its losses in Europe were very high -- $700 million.

In a conference call with analysts, GM CEO Dan Akerson  called Europe a "rather challenging market, not only for GM and Opel, but also for our competition."

GM also lost $100 million in South America.

Most of the money GM made came from sales in North America.  GM made $7.2 billion before taxes in the region.

GM plans to make major structural changes in Europe to reduce its persistent losses there.  

(photo by Steve Carmody/Michigan Radio)

Saturday marks the 75th anniversary of the end of the Flint Sit Down Strike.   

Hundreds of UAW members gathered in Flint today to commemorate the pivotal moment in the history of the union movement.   

Union members honored in song the six surviving sit down strikers and women’s brigade members who gathered to mark the anniversary of the strike that many say legitimized the United Auto Workers union.

Art Reyes is the president of UAW local 651.   He says the surviving sit-down strikers are an inspiration.